ZEELAND, MI – Herman Miller Inc.’s consolidated net sales for the third quarter were $354.4 million, a drop of 28.5% from the prior year period and 25.6% from the prior quarter. The company said it moved quickly to adjust labor, overhead and operating expenses.
The company completed most of the previously announced restructure actions during the quarter; however, the full benefits of the actions were not realized in the quarter. The company also implemented additional cost reduction actions near the end of the quarter. The net result of these combined actions is expected to reduce the quarterly operating expense levels by approximately 26% compared to fiscal 2008. On an annual basis, this represents a decrease in expense levels between $110 million and $115 million.
Brian Walker, CEO, said, "As we expected, business levels continued to decline with the overall economic stagnation that occurred during the quarter. Fortunately, our management teams were once again out in front of the rapid change and moved quickly to modify our cost structure and strengthen our cash position. Our people remain motivated and focused on the most important ways to serve our customers and improve our operating performance. We continue to challenge ourselves to find faster and more efficient methods to improve our position in the market and take advantage of competitive opportunities."
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The company completed most of the previously announced restructure actions during the quarter; however, the full benefits of the actions were not realized in the quarter. The company also implemented additional cost reduction actions near the end of the quarter. The net result of these combined actions is expected to reduce the quarterly operating expense levels by approximately 26% compared to fiscal 2008. On an annual basis, this represents a decrease in expense levels between $110 million and $115 million.
Brian Walker, CEO, said, "As we expected, business levels continued to decline with the overall economic stagnation that occurred during the quarter. Fortunately, our management teams were once again out in front of the rapid change and moved quickly to modify our cost structure and strengthen our cash position. Our people remain motivated and focused on the most important ways to serve our customers and improve our operating performance. We continue to challenge ourselves to find faster and more efficient methods to improve our position in the market and take advantage of competitive opportunities."
Read more.
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